How risky is Non-Compliance to your business?
The cost of non-compliance with Financial Crime Regulation, such as anti-money laundering, sanctions, tax evasion and others and have been continuously increasing in the past few years. However, staying compliant with ever-evolving regulations has become a challenge but failing to adhere to these regulations could leave businesses unable to operate.
What is Corporate Compliance?
Compliance at a corporate level involves following a wide range of rules, regulations, and laws designed to protect every aspect of a business. From obeying safety guidelines to following the standards for paying wages, a business must comply with the law at all times.
Why is Compliance crucial?
There are six fundamental reasons why a business should implement statutory compliance.
- It is required by Law – All registered companies are mandatorily obligated by the law to follow statutory regulations and comply with them.
- Reduce surprise audits – Non-compliance also invites unnecessary inspection and audits, leading to waste of time and money.
- The financial penalties are high – Failing to comply will lead to the imposition of hefty fines and indirect losses.
- Potential imprisonment for everyone involved – Severe cases of non-compliance could result in imprisonment of the CEO/Directors/Board members.
- Market reputation could be damaged – Payment of fines and imprisonment can destroy a company’s brand.
- The business could be forced to shut down – In cases that display dangerous non-compliance, authorities can order companies to cease operations.
Being compliant is not a choice and the regulatory environment is only going to get tougher, and companies that don’t stay on top of the legal requirement risk fines, imprisonment or even the forced close of their business.
For advice and guidance on whether your business is fully compliant with the financial crime regimes and with GDPR please contact Risk and Compliance Manager, John Grace on 01749 342 323 or email john.grace@mogersdrewett.com.